Wednesday, 26 June 2019

Ceisteanna (144)

Billy Kelleher

Ceist:

144. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the number of firms that have applied for working capital under the Brexit loan scheme; the number of firms that have been sanctioned financing to date by firm size (details supplied); and the value of same in tabular form. [27199/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Business)

The €300 million Brexit Loan Scheme provides relatively short-term working capital of 1 to 3 years, to eligible businesses with up to 499 employees to help them innovate, change or adapt to mitigate their Brexit challenges. Businesses can confirm their eligibility with the Strategic Banking Corporation of Ireland (SBCI) and if deemed eligible, can apply to one of the participating finance providers for a loan under the scheme.

The scheme was launched in March 2018 and, as at close of business on the 21 June, there were 656 eligibility applications received, of which 596 have been approved and 144 loans progressed to sanction at bank level to a value of €31.73 million.

Of the 144 loans sanctioned, just over 51% were sanctioned to micro enterprises, 40% to small enterprises and the balance to medium enterprises. The table below details the number of loans sanctioned by firm size.

Firm Size

No. of Firms

10 or Less

74

11 - 49

58

50-249

12

Total

144

While the conversion of eligibility to loan application has been impacted by the uncertainty surrounding the final form that Brexit will take, as at end of Q1 2019, 89 loans for a value of €19.4 million were drawn down. This represent a conversion rate of 88% of the total value of loans sanctioned (101 loans were sanctioned at bank level for a value of €22 million at 31st March 2019).

With Brexit in the horizon, the availability of the Brexit Loan Scheme means that qualifying Irish businesses will have access to low cost working capital without delay and forms part of the support for Irish business to cope with potential Brexit challenges.